Issue - meetings

To consider a report of the Corporate Director for Corporate and Support Services

The report presents updated forecasts for the Council’s finances for the period 2015/16 to 2018/19.

The Scrutiny Committee arte invited to consider the report and make any comments to the Executive.

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) presenting a forecast for the Council’s finances for the period 2015/2016 to 2018/2019 taking as its starting point the position set out in the budget reports considered at the Council meeting on 27 February 2014.

The following comments were made/issues raised:-

·         The forecasts in the report confirmed the scale of the financial challenge facing the Council in forthcoming years and the demands associated with presenting a balanced budget for 2015/2016.

·         In line with three out of the last four budgets approved by the Council Meeting, the projection for Council Tax increases has been changed to an on-going freeze rather than 2% per annum.

·         The level of airport dividend that the Council could expect.

·         The Council Tax Discount Scheme and holdbacks for the business rates retention safety net and the New Homes Bonus.

·         Forecasting for 2018/2019 was a major challenge as figures for the next spending review period were yet to be negotiated and cover dates beyond the next general election.

·         Pay award assumptions for the period 2016-2019 and impact on pension contributions in light of a reduction in the number of employees.

RESOLVED – That the report be noted.

To consider a report of the Corporate Director for Corporate and Support Services

The report presents updated forecasts for the Council’s finances for the period 2015/16 to 2018/19.

The Executive is recommended to:-

·           Note the recent announcements in the March Budget and their potential impact on the planned reductions in local government expenditure and their impact on Settlement Funding Assessments;

·           Note, and comment upon as appropriate, the financial forecasts for 2015/16 to 2018/19, and the key issues to be addressed in formulating a response to the financial challenges facing the Council;

·           Approve the adjustments to the medium term financial plan set out in the tables at paragraphs 3.2 and 4.2 including reducing the Council Tax increase assumption from 2% per annum to zero;

·           Note the indicative cumulative savings requirement for 2015/16 of £22.5m, £39.4m for 2016/17 rising to £64.5m by 2018/19 along with the sensitivity analysis included at Appendices One and Three;

·           Take the steps necessary to propose a balanced budget for 2015/16 and an updated Medium Term Financial Plan for presentation to the Budget Council meeting on 26 February 2015.

Officer Contact: Steve Houston on 0161 474 4000 or email:steve.houston@stockport.gov.uk

corpoThe Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) providing updated forecasts for the Council’s finances for the period 2015/16 to 2018/19.

RESOLVED – (1) That the recent announcements in the March Budget and their potential impact on the planned reductions in local government expenditure and their impact on Settlement Funding Assessments be noted.

(2) The financial forecasts for 2015/16 to 2018/19, and the key issues to be addressed in formulating a response to the financial challenges facing the Council be noted.

(3) That approval be given to the adjustments to the Medium Term Financial Plan set out in the tables at paragraphs 3.2 and 4.2 of the report including reducing the Council Tax increase assumption from 2% per annum to zero;

(4) That the indicative cumulative savings requirement for 2015/16 of £22.5m, £39.4m for 2016/17 rising to £64.5m by 2018/19 along with the sensitivity analysis included at Appendices One and Three of the report be noted.